Banks will defer loan repayments for small businesses affected by coronavirus for six months as part of a $100billion emergency relief package
- Australian Banking Association announced six-month loan repayment holiday
- Repayments worth $100billion will be deferred in a bid to generate $8billion
- ABA chief executive Anna Bligh announced deal with the big four banks
- Coronavirus symptoms: what are they and should you see a doctor?
Banks will defer loan repayments for small businesses affected by coronavirus for six months but not home borrowers.
Anna Bligh, the chief executive of the Australian Banking Association, made the announcement on Friday as the national COVID-19 death toll rose to seven.
‘Banks want to make sure that every business, every small business knows, they are now able to get six months’ deferral on all loans associated with the business,’ she told reporters.
The big four banks – Commonwealth, Westpac, ANZ and NAB – will offer repayment relief for six months, worth $100billion, which is expected to generate $8billion for the economy.
‘They’re right now calling their business customers,’ Ms Bligh said.
Banks will defer loan repayments for small businesses affected by coronavirus for six months. Anna Bligh, the chief executive of the Australian Banking Association, made the announcement on Friday as the national COVID-19 death toll rose to seven.
Ms Bligh, a former Queensland Labor premier, said the repayment holiday was about encouraging businesses to keep employing staff, especially those with a home loan.
The relief package for business is coming into effect on Monday morning.
A mortgage repayment holiday package had not been announced for home borrowers.
‘At this stage, we haven’t seen evidence there’s significant growth in mortgage stress,’ she told Sky News later.
‘If that changes, banks will be looking at it.’